Item Description:
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Administrator Amendment No. 44 - Use of Affordable Housing Aid for Emergency Rental Assistance
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Resolution:
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BE IT RESOLVED, that the Local Affordable Housing Aid Fund (Fund 24) 2024 revenue budget be increased by $5,000,000, and that an interfund revenue transfer in the amount of $5,000,000 to the Human Services and Public Health department (Fund 20) be authorized; and
BE IT FURTHER RESOLVED, that the Human Services and Public Health department 2024 revenue and expenditure budget be increased by $5,000,000 and 6.0 new FTE positions for emergency rental assistance for households at risk of eviction.
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Background:
The Administration, Operations and Budget Committee approved Administrator Amendment #24 to the 2024 Proposed Budget on November 1, 2023. This budget amendment authorizes the creation of Fund 24 as a special revenue fund for the receipt of Affordable Housing Aid from statewide and metropolitan area sales tax revenue sources.
On November 28, 2023, the Board approved Resolution 23-0438, which affirmed Hennepin County’s strategy and implementation plan for using state and local Affordable Housing Aid to focus on households with the lowest incomes to reduce disparities in homelessness and housing cost burden, and to increase access to greater economic opportunities.
Hennepin County received notice that it will receive $1.7 million of state affordable housing aid on December 26, 2023. In addition, preliminary revenue estimates suggest Hennepin County will receive approximately $20 to 25 million in 2024 from a combination of state affordable housing aid and the new 0.25% metropolitan area housing sales tax.
The initial funds to arrive in late 2023 will launch a new ongoing eviction prevention program.
This will continue the successes of the COVID-era eviction prevention, providing assistance at Housing Court where it is needed most. Consistent with the implementation plan attached to Resolution 23-0438, the county then plans to allocate $5 million a year of Local Affordable Housing Aid revenues towards emergency rental assistance.
This Amendment increases the Human Services and Public Health department’s 2024 budget by $5 million for emergency rental assistance, using a transfer of funds from the Local Affordable Housing Aid Fund (Fund 24). In addition, 6.0 new FTE positions are authorized. The 2023 deposit of $1.7 million is recognized as a “use of restricted fund balance” within the 2024 revenue budget for Fund 24, and then another $3.3 million of new revenue is also budgeted to reach a total 2024 allocation of $5 million.
The Housing and Economic Development department plans to bring a budget plan for the rest of anticipated 2024 revenues to the Board for consideration towards the end of the first quarter in 2024.
recommendation
Recommendation from County Administrator: Recommend Approval